How much could you withdraw at the beginning of each year for the next 25 years?

2016-04-02 2:24 am
You are ready to retire. A glance at your 401(k) statement indicates that you have $750,000. If the funds remain in an account earning 9.0 percent, how much could you withdraw at the beginning of each year for the next 25 years?
a. $55,620
b. $70,050
c. $35,830
d. $2,500

回答 (3)

2016-04-02 3:32 pm
Interesting problem, but what is your question? Where is your solution? You do not show any of your work so it is not possible to tell you if it is correct. You learn this by doing it. No one will help you when you get a similar problem in a test. If you need help with the problem you should indicate what you need. If you need help with the problem you should indicate what you need. For example, you might need help in getting started, or you do not understand the format of a calculation, or you get so far in a problem and do not know where to go from there. You should show your work so someone can help you by pointing out where you are wrong and by explaining areas where you show weaknesses. Presumably you studied this material and have some idea what to do. This is not a free homework solving service. You learn this by doing it. No one will help you when you get a similar problem in a test.

Find the payment of an annuity due. You can use a financial calculator, a spreadsheet functions. or a formula.

All four choices are correct answers, and in three cases you would have money left over in the fund at the end of 25 years. Choice b would deplete the fund in 25 years.

Now that you have the correct answer, how will you solve a similar problem with different numbers?
2016-04-02 5:24 am
Where the hell are you getting 9%?
2016-04-02 3:40 am
first of all 9.0% is not achievable without a lot of risk.


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